Chancellor Alistair Darling has told the Cabinet that the Budget will have a strong focus on recovery.
He briefed colleagues just hours before the final Budget ahead of this year's general election and was greeted with a round of applause according to Downing Street.
Prime Minister Gordon Brown's spokesman told reporters: "This is a Budget which is going to have a strong focus on recovery. The mood was positive and I think Cabinet colleagues were encouraged by what they heard from the Chancellor."
With just six weeks before the nation is expected to go to the polls, the Chancellor will have to walk a fine line as he seeks to offer voters hope for the future while beginning the grim task of spelling out where the spending axe will fall.
Officials have made clear that an unexpected "windfall" from better-than-expected Government borrowing figures - put by some experts at £12 billion - will be used primarily to reduce the £178 billion deficit rather than fund a spending spree.
There will be some populist measures, including an expected announcement to scrap stamp duty for first-time buyers on homes costing up to £250,000 - saving up to £2,500 in tax.
It is thought there will be a new crackdown on tax evasion, with punitive fines for wealthy investors who try to hide money in offshore tax havens, intended to send a political message that the economic pain will be spread fairly.
Mr Darling is expected to order the part-nationalised Royal Bank of Scotland and Lloyds to provide a further £90 billion in business lending after complaints that the Government has not done enough to restore the flow of credit.
There will be a new requirement on the banks to provide a basic account to every adult UK citizen, intended to address the problems of "financial exclusion" faced by many of the poorest people in the country.
The Chancellor is expected to unveil details of a £2 billion "green" investment fund to finance projects such as wind farms and other renewable energy sources, although it is not expected to come on stream until next year.
Tory leader David Cameron said Labour has "completely run out of ideas" and is unable to offer the leadership needed to take the country out of recession."
Liberal Democrat leader Nick Clegg said: "This should be a Budget of honesty about the state of the Government finances. It should be a Budget of fairness, putting money back in the pockets of people who desperately need a break."
